Microloan Program

One of the challenges of economic development in Myanmar is gaining access to reasonably priced loans. The poor are often victimized by loans with interest rates of 40-80% on money borrowed, hidden behind obscure terms and redtape, creating a new type of indentured servitude from which the borrower is likely not to escape.

MCF provided small livelihood loans between $150-$200 with 3% interest to the families of children attending Shan Chaung Monastic School, in return for the promise to keep their children in school. This pilot program ran successfully in 2009-2010 with 14 farming and fishing families. After 12 months, the payback rate was 100%. Local families improved their livelihoods and their food supply while their children continued in school. A win-win for the community!

Microloan familiy reads over the loan contract including the promise to keep their children in school

Parent meeting at Shan Chaung Monastic School explaining how microfinance works